Get a better internet connection. I can send you info on my 56k dialup provider.
Seriously, I am on 56k and I have no problems with lag. I would say if you are not downloading stuff in the background, then your connection is not that stable. Pings really mean nothing at all. My lowest ping is at 250 ms which would make most of you shudder and refuse to try to race there. I race with pings from 250 to 400 ms without lag (I ask often and am told I'm fine).
Try searching here for "packet loss" or something. There is a ping command in the command prompt that you can send packets to a site such as google or liveforspeed.net and tell it a parameter of how many times to send. It will then report the time and number of lost packets. I just can't remember exactly how to syntax the ping command for multiple pings.